Medical Cost Transparency Update
By Marcy B. Spitz, Esq.
On January 1, 2021, new laws went into effect requiring hospitals to publish prices of their procedures. Since then, many hospitals are not in compliance with the new laws, which is requiring action to be taken to enforce compliance. For example, in April, CMS sent out hundreds of warning letters to hospitals all over the country. They will not publish the list since penalties were not imposed and CMS is hoping for increased compliance before penalties would be applied. A new startup company responsible for tracking this information found 2,800 hospitals out of compliance, as of August 2021.
In addition to blatant non-compliance, hospitals have embedded the information that was supposed to be disclosed to the public making it more difficult or nearly impossible to locate. In response, the Biden administration is proposing the following to encourage these institutions to comply:
- Penalties for larger hospitals (more than 30 beds) of up to 2 million dollars a year
- Clamping down on hospitals that try and embed codes to prevent access to the information
The law’s goal is to provide procedure costs to the general population for any institution on any given day. Currently, insurance companies are not required to disclose this information but will be required to do so beginning in January 2022. HHS Secretary Xavier Becerra said “With today’s proposed rule, we are simply showing hospitals through stiffer penalties: Concealing the costs of services and procedures will not be tolerated by this Administration.”
These laws are enacted to assist consumers and your clients in the marketplace as they need required medical procedures due to accident and injuries. This information could impact your medical liens.
MASSIVE can answer your questions on these charges and handle all your lien resolution needs. Contact our experienced and dedicated team today at (833) 466-2774 or at [email protected] to learn how our services can work to get a bigger recovery for both you and your clients.